JTI Austria GmbH Celebrates 240 Years of Austrian Tobacco History: Market Share, Revenue and Future Challenges

medianet technology: JTI Austria GmbH, in Austria since 2007 after taking over Gallagher / Austria Tabak, celebrating 240 years of Austrian tobacco history this year. With 600 employees and a market share of 32% for tobacco products, JTI is shaping the tobacco landscape in Austria. Among the company’s most famous brands are Camel, Winston and Benson & Hedges.
The Austrian tobacco market will also generate 4,700 The passengerconversion of 3.8 billion euros. Every year in the country 11.3 billion cigarettes sell Tobacco retailers in Austria benefit from the highest trade margin in Europe, which is 53%, while the tax burden on every pack of cigarettes sold 76% making up Tobacco tax revenue has doubled in the last ten years, despite a stable market, with flat sales in 2023.

Ralf Wolfgang LothertHead of Public Affairs and member of the board of directors JTI Austria GmbH, faced the challenge of representing his company’s interests in a changing regulatory environment. Market revenue of other tobacco products such as pods, heaters and e-liquids are subject to the trend towards slightly less harmful incentives and they benefit from taxes because they are not (yet) subject to tobacco tax. “This development calls for tax reform to ensure fair competition,” he says Lothert.

Just over 11% of the cigarette market is made up of tobacco products that have been mainly legally imported into Austria. However, the increase in taxes on cigarettes in Eastern markets has resulted in the price difference falling significantly and the volume of imports declining accordingly.

In any case, cigarettes are not one of the main price drivers in this country. The inflationary changes in the tobacco industry were just over 3% recently. “The demand for value products has been steady,” he said Ralf Wolfgang Lothert in the technology studio talk to the medianet editor Chris Rudd“Consumers have remained loyal to their cigarette brands.”